Investing.com - The pound retreated against the U.S. dollar on Wednesday, tracking the euro’s losses as renewed concerns over the financial crisis in the single currency bloc weighed on demand for riskier assets.
GBP/USD hit 1.5449 during early European trade, the daily low; the pair subsequently consolidated at 1.5471, shedding 0.08%.
Cable was likely to find support at 1.5400, the low of December 30 and resistance at 1.5525, the high of January 6.
Sterling came under pressure as Spain and Italy prepared to sell as much as EUR17 billion in debt on Thursday and Friday respectively.
The yield on 10-year Italian government bonds remained above the 7% threshold seen as unsustainable, at 7.14%, while the yield on Spanish 10-year bonds was at 5.54%.
Markets were also jittery ahead of Thursday’s European Central Bank policy meeting. The ECB was expected to keep rates unchanged at 1% and to reiterate that governments in the euro zone must step up efforts to tackle the region’s debt crisis.
Meanwhile, a report showed that overnight deposits at the European Central Bank on Wednesday hit a fresh record of EUR485.898 billion, indicating that banks in the region remain unwilling to lend to each other.
Elsewhere, the pound was lower against the euro with EUR/GBP adding 0.04%, to hit 0.8255.
Later in the day, the U.S. was to produce official data on crude oil stockpiles, while the Federal Reserve was to release its Beige Book.
GBP/USD hit 1.5449 during early European trade, the daily low; the pair subsequently consolidated at 1.5471, shedding 0.08%.
Cable was likely to find support at 1.5400, the low of December 30 and resistance at 1.5525, the high of January 6.
Sterling came under pressure as Spain and Italy prepared to sell as much as EUR17 billion in debt on Thursday and Friday respectively.
The yield on 10-year Italian government bonds remained above the 7% threshold seen as unsustainable, at 7.14%, while the yield on Spanish 10-year bonds was at 5.54%.
Markets were also jittery ahead of Thursday’s European Central Bank policy meeting. The ECB was expected to keep rates unchanged at 1% and to reiterate that governments in the euro zone must step up efforts to tackle the region’s debt crisis.
Meanwhile, a report showed that overnight deposits at the European Central Bank on Wednesday hit a fresh record of EUR485.898 billion, indicating that banks in the region remain unwilling to lend to each other.
Elsewhere, the pound was lower against the euro with EUR/GBP adding 0.04%, to hit 0.8255.
Later in the day, the U.S. was to produce official data on crude oil stockpiles, while the Federal Reserve was to release its Beige Book.